Ng also notes that there’s less risk of an oversupply-related correction for coal markets as environmental, social and governance (ESG) pressure has pushed capital toward clean energy, thus limiting rapid coal supply growth.
KGI Securities analyst Joel Ng has upgraded Geo Energy Resources to “outperform” with a higher target price of 42 cents as he anticipates the company to have a record year ahead on the back of “resilient” coal prices.
“While we expect coal prices to soften in 2H2021, dynamics favour coal miners given the buoyant demand from India and China,” he says in an August 30 research note.
